Auto and Car Insurance

Auto Insurance, im swtiching companies but im worried about lienholder. Help?

i have Capital One as my auto lienholder and as of right now allstate as my insurance. I was sent a letter by allstate that they are going to cancel my policy as of 12/17 for nonpayment. They want $830 for a payment which I dont have right now. I want to switch to Geico which is extremley affordable compared to allstate but i cant get coverage untill 12/ 18 or at the latest 12/19. My big question is even though techincally id be without coverage for a day would my lienholder come after the car even though im switching companies? Scared, Thanks Im worried that Capital One would try to reposess even though i have never been late and

Public Comments

1. It shouldn't be a problem, but do you owe Allstate right now, or is the amount due for the future? Also, if you live in California, expect to be in trouble because as soon as your insurance terminates the state comes after you. If you don't live in California, you'll be ok, because you can prove you have insurance the next day to Capital One. Hope this helps:)
2. no they wont come after you,but i wouldn't drive it for those days,i got caught between switching about 25 years ago,and had an accident,it cost me a lot of money to get out of it,so i wouldn't worry about the lender,but do be extremely careful if you drive it,that's usually when things happen is when you don't have no coverage,the lender you can talk to,and they will understand,good luck and Merry x-mas.
3. Don't drive the car on the day it's without insurance. Leave it parked, off the road if you have a place to park off road so it won't have a chance of even being hit. The chances are the lender won't bother you. Typically they don't worry about anything but not getting paid, and even then typically 90 days goes by before they get serious with repossession. As I see it, your biggest worry is the possibility that Allstate will tell the state your insurance has been canceled for non-payment, and the state will void your registration or suspend your license to drive. If that happens you will have some work to proving you merely switched providers, and a copy of your then current insurance card should fix it, but be careful of that happening. Also, depending on whether the $830 is for past or future bills, Allstate may turn you in to collections, which will affect your credit rating. Bottom line, please don't drive until you know for sure that you are covered.
4. As long as the car is not stolen on the off-day, or driven, you should be okay there, but, Geico is entitled to know Allstate is cancelling for non-payment. If they find out later, they can reject you totally for not disclosing all relevant details. Plus, you will still owe Allstate for time on risk to the cancellation date. If they are not paid, Geico will definitely cancel you. No company knowing insures anybody who has a balance outstanding with another company. Sometimes they even collect the balance for the other company, sometimes they ask for a confirmation of payment before they even consider the application. I have had clients rejected for a new policy when a search revealed an outstanding balance from several years earlier.